Telemarketing Sales Rule Fees, 20848-20852 [05-8044]
Download as PDF
<![CDATA[
20848
Federal Register / Vol. 70, No. 77 / Friday, April 22, 2005 / Proposed Rules
manufacturer, this AD does not include that
requirement.
Airplane Flight Manual (AFM) Revision
(b) Within 1 month after the effective date
of this AD or concurrently with the
replacement required by paragraph (a) of this
AD, whichever is first: Revise the Limitations
and Normal Procedures sections of the AFM
by inserting into the AFM a copy of all the
applicable Cessna temporary revisions (TRs)
listed in Table 1 of this AD.
Note 1: When a statement identical to that
in the applicable TR(s) listed in Table 1 of
this AD has been included in the general
revisions of the AFM, the general revisions
may be inserted into the AFM, and the copy
of the applicable TR may be removed from
the AFM.
TABLE 1.—AFM REVISION
Applicable Model 650 airplanes
Cessna TR(s)
Citation III, S/Ns 0001 through 0199 inclusive, and 0203 through 0206
inclusive; equipped with Honeywell SPZ–8000 integrated avionics
system.
Citation III, S/Ns 0001 through 0199 inclusive, and 0203 through 0206
inclusive; not equipped with Honeywell SPZ–8000 integrated avionics
system.
Citation VI, S/Ns 0200 through 0202 inclusive, and 0207 and subsequent.
Citation VII, S/Ns 7001 and subsequent ..................................................
Citation VII, S/Ns 7001 and subsequent, equipped with Honeywell
SPZ–8000 integrated avionics system.
65C3FM TC–R02–01, dated May 12, 2004; and 65C3FM TC–R02–06,
dated August 11, 2004.
Parts Installation
(c) As of the effective date of this AD, no
person may install an ACU having P/N
9914197–3 or –4, on any airplane.
Alternative Methods of Compliance
(AMOCs)
(d) In accordance with 14 CFR 39.19, the
Manager, Wichita Aircraft Certification
Office, FAA, is authorized to approve
AMOCs for this AD.
Issued in Renton, Washington, on April 13,
2005.
Ali Bahrami,
Manager, Transport Airplane Directorate,
Aircraft Certification Service.
[FR Doc. 05–8095 Filed 4–21–05; 8:45 am]
BILLING CODE 4910–13–P
FEDERAL TRADE COMMISSION
16 CFR Part 310
RIN 3084–0098
Telemarketing Sales Rule Fees
Federal Trade Commission.
Notice of proposed rulemaking;
request for public comment.
AGENCY:
ACTION:
SUMMARY: The Federal Trade
Commission (the ‘‘Commission’’ or
‘‘FTC’’) is issuing a Notice of Proposed
Rulemaking (‘‘NPRM’’) to amend the
Telemarketing Sales Rule (‘‘TSR’’) to
revise the fees charged to entities
accessing the National Do Not Call
Registry, and invites written comments
on the issues raised by the proposed
changes.
Comments must be received by
June 1, 2005.
ADDRESSES: Interested parties are
invited to submit written comments.
DATES:
VerDate jul<14>2003
15:26 Apr 21, 2005
Jkt 205001
65C3FM TC–R02–01, dated May 12, 2004; and 65C3FM TC–R02–07,
dated August 11, 2004.
65C6FM TC–R04–01, dated May 12, 2004; and 65C6FM TC–R04–06,
dated August 11, 2004.
65C7FM TC–R10–01, dated May 12, 2004.
65C7FM TC–R10–07, dated August 11, 2004.
Comments should refer to ‘‘TSR Fee
Rule, Project No. P034305,’’ to facilitate
the organization of comments. A
comment filed in paper form should
include this reference both in the text
and on the envelope, and should be
mailed or delivered to the following
address: Federal Trade Commission/
Office of the Secretary, Room H–159
(Annex K), 600 Pennsylvania Avenue,
NW., Washington, DC 20580. Comments
containing confidential material must be
filed in paper form, must be clearly
labeled ‘‘Confidential,’’ and must
comply with Commission Rule 4.9(c),
16 CFR 4.9(c) (2005).1 The FTC is
requesting that any comment filed in
paper form be sent by courier or
overnight service, if possible, because
U.S. postal mail in the Washington, DC
area and at the Commission is subject to
delay due to heightened security
precautions.
Comments filed in electronic form
should be submitted by clicking on the
following Web link: https://
secure.commentworks.com/ftcdncfees2005 and following the
instructions on the Web-based form. To
ensure that the Commission considers
an electronic comment, you must file it
on the Web-based form at https://
secure.commentworks.com/ftcdncfees2005. You may also visit
https://www.regulations.gov to read this
notice of proposed rulemaking, and may
file an electronic comment through that
1 The comment must be accompanied by an
explicit request for confidential treatment,
including the factual and legal basis for the request,
and must identify the specific portions of the
comment to be withheld from the public record.
The request will be granted or denied by the
Commission’s General Counsel, consistent with
applicable law and the public interest. See
Commission Rule 4.9(c), 16 CFR 4.9(c).
PO 00000
Frm 00007
Fmt 4702
Sfmt 4702
Web site. The Commission will consider
all comments that regulations.gov
forwards to it.
The FTC Act and other laws the
Commission administers permit the
collection of public comments to
consider and use in this proceeding as
appropriate. All timely and responsive
public comments, whether filed in
paper or electronic form, will be
considered by the Commission, and will
be available to the public on the FTC
Web site, to the extent practicable, at
https://www.ftc.gov. As a matter of
discretion, the FTC makes every effort to
remove home contact information for
individuals from the public comments it
receives before placing those comments
on the FTC Web site. More information,
including routine uses permitted by the
Privacy Act, may be found in the FTC’s
privacy policy, at https://www.ftc.gov/
ftc/privacy.htm.
FOR FURTHER INFORMATION CONTACT:
David B Robbins, (202) 326–3747,
Division of Planning & Information,
Bureau of Consumer Protection, Federal
Trade Commission, 600 Pennsylvania
Avenue, NW., Washington, DC 20580.
SUPPLEMENTARY INFORMATION:
I. Background
On December 18, 2002, the
Commission issued final amendments to
the Telemarketing Sales Rule, which,
inter alia, established the National Do
Not Call Registry, permitting consumers
to register, via either a toll-free
telephone number or the Internet, their
preference not to receive certain
telemarketing calls (‘‘Amended TSR’’).2
Under the Amended TSR, most
2 See 68 FR 4580 (Jan. 29, 2003) (codified at 16
CFR pt. 310).
E:\FR\FM\22APP1.SGM
22APP1
Federal Register / Vol. 70, No. 77 / Friday, April 22, 2005 / Proposed Rules
telemarketers are required to refrain
from calling consumers who have
placed their numbers on the registry.3
Telemarketers must periodically access
the registry to remove from their
telemarketing lists the telephone
numbers of those consumers who have
registered.4
Shortly after issuance of the Amended
TSR, Congress passed the Do-Not-Call
Implementation Act (‘‘the
Implementation Act’’).5 The
Implementation Act gave the
Commission the specific authority to
‘‘promulgate regulations establishing
fees sufficient to implement and enforce
the provisions relating to the ‘do-notcall’ registry of the [TSR]. * * * No
amounts shall be collected as fees
pursuant to this section for such fiscal
years except to the extent provided in
advance in appropriations Acts. Such
amounts shall be available * * * to
offset the costs of activities and services
related to the implementation and
enforcement of the [TSR], and other
activities resulting from such
implementation and enforcement.’’ 6
On July 29, 2003, pursuant to the
Implementation Act and the
Consolidated Appropriations
Resolution, 2003,7 the Commission
issued a Final Rule further amending
the TSR to impose fees on entities
accessing the National Do Not Call
Registry (‘‘the Original Fee Rule’’).8
Those fees were based on the FTC’s best
estimate of the number of entities that
would be required to pay for access to
the national registry, and the need to
raise $18.1 million in Fiscal Year 2003
to cover the costs associated with the
implementation and enforcement of the
‘‘do-not-call’’ provisions of the
Amended TSR. The Commission
determined that the fee structure would
be based on the number of different area
codes of data that an entity wished to
access annually. The Original Fee Rule
established an annual fee of $25 for each
area code of data requested from the
national registry, with the first five area
codes of data provided at no cost.9 The
3 16
CFR 310.4(b)(1)(iii)(B).
CFR 310.4(b)(3)(iv). The TSR requires
telemarketers to access the national registry at least
once every thirty-one days, effective January 1,
2005. Id.
5 Do-Not-Call Implementation Act, Pub. L. 108–
10, 117 Stat. 557 (2003).
6 Id. at Section 2.
7 Consolidated Appropriations Resolution, 2003,
Pub. L. 108–7, 117 Stat. 11 (2003).
8 68 FR 45134 (July 31, 2003).
9 Once an entity requested access to area codes of
data in the national registry, it could access those
area codes as often as it deemed appropriate for one
year (defined as its ‘‘annual period’’). If, during the
course of its annual period, an entity needed to
access data from more area codes than those
4 16
VerDate jul<14>2003
15:26 Apr 21, 2005
Jkt 205001
maximum annual fee was capped at
$7,375 for entities accessing 300 area
codes of data or more.10
On July 30, 2004, pursuant to the
Implementation Act and the
Consolidated Appropriations Act, 2004
(‘‘the 2004 Appropriations Act’’),11 the
Commission issued a revised Final Rule
further amending the TSR increasing
fees on entities accessing the National
Do Not Call Registry (‘‘the Revised Fee
Rule’’).12 Those fees were based on the
FTC’s experience through June 1, 2004,
its best estimate of the number of
entities that would be required to pay
for access to the national registry, and
the need to raise $18 million in Fiscal
Year 2004 to cover the costs associated
with the implementation and
enforcement of the ‘‘do-not-call’’
provisions of the Amended TSR. The
Commission determined that the fee
structure would continue to be based on
the number of different area codes of
data that an entity wished to access
annually. The Revised Fee Rule
established an annual fee of $40 for each
area code of data requested from the
national registry, with the first five area
codes of data provided at no cost.13 The
maximum annual fee was capped at
$11,000 for entities accessing 280 area
codes of data or more.14
In the Consolidated Appropriations
Act, 2005 (‘‘the 2005 Appropriations
Act’’),15 Congress permitted the FTC to
collect offsetting fees in the amount of
$21.9 million in Fiscal Year 2005 to
implement and enforce the TSR.16
Pursuant to the 2005 Appropriations
Act and the Implementation Act, as well
as the Telemarketing Fraud and Abuse
Prevention Act (‘‘the Telemarketing
Act’’),17 the FTC is issuing this NPRM
initially selected, it would be required to pay for
access to those additional area codes. For purposes
of these additional payments, the annual period
was divided into two semi-annual periods of six
months each. Obtaining additional data from the
registry during the first semi-annual, six month
period required a payment of $25 for each new area
code. During the second semi-annual, six month
period, the charge for obtaining data from each new
area code requested during that six-month period
was $15. These payments for additional data would
provide the entity access to those additional area
codes of data for the remainder of its annual term.
10 68 FR at 45141.
11 Consolidated Appropriations Act, 2004, Pub. L.
108–199, 118 Stat. 3 (2004).
12 69 FR 45580 (July 30, 2004).
13 Id. at 45,584. The Revised Fee Rule has the
same fee structure as the Original Fee Rule;
however, fees were increased from $25 to $40 per
area code, from $15 to $20 per area code for the
second semi-annual six month period, and from a
maximum of $7,375 to $11,000.
14 69 FR at 45,584.
15 Consolidated Appropriations Act, 2005, Pub. L.
108–447, 118 Stat. 2809 (2004).
16 Id. at Division B, Title V.
17 15 U.S.C. 6101–08.
PO 00000
Frm 00008
Fmt 4702
Sfmt 4702
20849
to amend the fees charged to entities
accessing the National Do Not Call
Registry.
II. Calculation of Proposed Revised
Fees
In the Original Fee Rule, the
Commission estimated that 10,000
entities would be required to pay for
access to the National Do Not Call
Registry. The Commission based its
estimate on the ‘‘best information
available to the agency’’ at that time.18
It noted that this estimate was based on
‘‘a number of significant assumptions,’’
about which the Commission had
sought additional information during
the comment period. The Commission
noted, however, that it received
virtually no comments providing
information supporting or challenging
these assumptions.19 As a result, the
Commission anticipated ‘‘that these fees
may need to be reexamined periodically
and adjusted, in future rulemaking
proceedings, to reflect actual experience
with operating the registry.’’ 20
In the Revised Fee Rule, the
Commission reported that ‘‘[a]s of June
1, 2004, more than 65,000 entities had
accessed the national registry. More
than 57,000 of those entities had
accessed five or fewer area codes of data
at no charge, and 1,100 ‘‘exempt’’
entities also accessed the registry at no
charge. Thus, more than 7,100 entities
have paid for access to the registry, with
over 1,200 entities paying for access to
the entire registry.’’ 21 The Commission
based its calculation of revised fees on
this experience, with the expectation
that the number of entities accessing the
registry in Fiscal Year 2004 would be
substantially the same as in Fiscal Year
2003. As in the Original Fee Rule, the
Commission based its estimate on the
best information available at the time,
with the continuing intent to
periodically reexamine and adjust the
fees to reflect actual experience with
operating the registry.
From March 1, 2004 through February
28, 2005, more than 60,800 entities have
accessed all or part of the information
in the registry. Approximately 1,300 of
these entities are ‘‘exempt’’ and
therefore have accessed the registry at
no charge.22 An additional 52,700
18 68
FR at 45140.
19 Id.
20 68
FR at 45142.
FR at 45584.
22 The Original Fee Rule and the Revised Fee Rule
stated that ‘‘there shall be no charge to any person
engaging in or causing others to engage in outbound
telephone calls to consumers and who is accessing
the National Do Not Call Registry without being
required to under this Rule, 47 CFR 64.1200, or any
21 69
E:\FR\FM\22APP1.SGM
Continued
22APP1
20850
Federal Register / Vol. 70, No. 77 / Friday, April 22, 2005 / Proposed Rules
entities have accessed five or fewer area
codes of data, also at no charge. As a
result, approximately 6,700 entities
have paid for access to the registry, with
slightly less than 1,100 entities paying
for access to the entire registry.
As previously stated, the Commission
can collect offsetting fees in Fiscal Year
2005 to implement and enforce the
Amended TSR.23 The Commission is
proposing a revised Fee Rule to raise
$21.9 million of fees to offset costs it
expects to incur in this Fiscal Year for
the following purposes related to
implementing and enforcing the ‘‘donot-call’’ provisions of the Amended
TSR. First, funds are required to operate
the national registry. This includes
items such as handling consumer
registration and complaints,
telemarketer access to the registry, state
access to the registry, and the
management and operation of law
enforcement access to appropriate
information. Second, funds are required
for law enforcement efforts, including
identifying targets, coordinating
domestic and international initiatives,
challenging alleged violators, and
consumer and business education
efforts, which are critical to securing
compliance with the Amended TSR.
Third, funds are required to cover
ongoing agency infrastructure and
administration costs, including
information technology structural
supports and distributed mission
overhead support costs for staff and
non-personnel expenses such as office
space, utilities, and supplies.
The Commission proposes to revise
the fees charged for access to the
national registry based on the
assumption that approximately the same
number of entities will access similar
amounts of data from the national
registry during their next annual
period.24 Based on that assumption, and
the continued allowance for free access
to ‘‘exempt’’ organizations and for the
first five area codes of data, the
proposed revised fee would be $56 per
area code. The fee charged to entities
requesting access to additional area
codes of data during the second six
months of their annual period would be
$28. The maximum amount that would
be charged to any single entity would be
$15,400, which would be charged to any
entity accessing 280 area codes of data
or more.
The Commission proposes to continue
allowing, at least for the next annual
period, all entities accessing the
national registry to obtain the first five
area codes of data for free.25 The
Commission allowed such free access in
the Original Fee Rule and the Revised
Fee Rule, ‘‘to limit the burden placed on
small businesses that only require
access to a small portion of the national
registry.’’ 26 The Commission noted that
such a fee structure was consistent with
the mandate of the Regulatory
Flexibility Act,27 which requires that to
the extent, if any, a rule is expected to
have a significant economic impact on
a substantial number of small entities,
agencies should consider regulatory
alternatives to minimize such impact.
As stated in the Original Fee Rule and
the Revised Fee Rule, ‘‘the Commission
continues to believe that providing
access to five area codes of data for free
is an appropriate compromise between
the goals of equitably and adequately
funding the national registry, on one
hand, and providing appropriate relief
for small businesses, on the other.’’ 28 In
addition, requiring some or all of the
52,700 entities that currently access five
or fewer area codes from the national
registry at no cost to pay a small fee for
access would place an additional
burden on the registry, requiring the
other federal law.’’ 16 CFR 310.8(c). Such ‘‘exempt’’
organizations include entities that engage in
outbound telephone calls to consumers to induce
charitable contributions, for political fund raising,
or to conduct surveys. They also include entities
engaged solely in calls to persons with whom they
have an established business relationship or from
whom they have obtained express written
agreement to call, pursuant to 16 CFR
310.4(b)(1)(iii)(B)(i) or (ii), and who do not access
the national registry for any other purpose.
23 See Consolidated Appropriations Act, 2005,
Pub. L. 108–447, 118 Stat. 2809, at Division B, Title
V. The 2005 Appropriations Act permitted the
Commission to collect offsetting fees of $21.9
million for those purposes.
24 Telemarketers were first able to access the
national registry on September 2, 2003. As a result,
the first year of operation did not conclude until
August 31, 2004. Similarly, the second year of
operation will not end until August 31, 2005. The
Commission realizes that a small number of
additional entities may access the national registry
for the first time prior to September 1, 2005, and
should be considered in calculating the revised
fees. In this regard, the Commission will adjust the
assumptions to reflect the actual number of entities
that have accessed the registry, and make the
appropriate changes to the fees, at the time of
issuance of the Final Rule.
25 If all entities accessing the national registry
were charged for the first five area codes of data,
the cost per area code would be reduced to $37,
while the maximum amount charged to access the
entire national registry would be $10,360.
26 See 68 FR at 45,140 and 69 FR at 45582.
27 5 U.S.C. 601.
28 See 68 FR at 45141 and 69 FR at 45584. The
Commission further stated that ‘‘[m]ost of these
entities—realtors, car dealers, community-based
newspapers, and other small businesses—are
precisely the type of businesses which the
Regulatory Flexibility Act requires the agency to
consider when adopting regulations.’’ See 69 FR at
45583. Also see the discussion regarding the
‘‘Regulatory Flexibility Act’’ in Section VI of this
Notice.
VerDate jul<14>2003
15:26 Apr 21, 2005
Jkt 205001
PO 00000
Frm 00009
Fmt 4702
Sfmt 4702
expenditure of more resources to handle
properly that additional traffic.
While the Proposed Rule provides
free access to a small portion of the
national registry, the Commission
continues to seek comment on other
alternatives that would balance the
burdens faced by small businesses with
the need to raise appropriate fees to
fund the registry in a more equitable
manner. Because the implementation
and enforcement costs are borne by a
small percentage of entities that access
the registry, the Commission is
particularly interested in comments
addressing the propriety of changing or
eliminating the number of area codes for
which there is no charge, and the
impact, if any, on entities that access the
registry, including small businesses.29
In addition, the Commission notes that
the cost of accessing data in the registry
is relatively modest. For example, if the
fee was $37 per area code, and no area
codes were offered for free, the total fee
for a full year of access to five area
codes of data would be $185. In this
regard, given the modest nature of the
fees, along with the increasing burden
borne by those organizations that do pay
for access, the Commission is especially
interested in comments addressing the
nature and type of entities that are
accessing five or fewer area codes at no
cost, whether these entities are
primarily the types of businesses which
the Regulatory Flexibility Act requires
the agency to consider when adopting
regulations, and whether such
businesses need access to one, two,
three, four, or five area codes.
Currently, approximately 19,000
entities access five free area codes. The
Commission invites comment on
whether any changes in the number of
free area codes would affect an entity’s
business practices, including whether
an entity would choose not to access an
area code if it had to pay for that area
code or whether the entity would pay to
continue accessing that area code.
The Commission also proposes to
continue allowing ‘‘exempt’’
organizations, as discussed in footnote
22, above, to obtain free access to the
national registry. The Commission
believes that any exempt entity,
voluntarily accessing the national
29 As noted in footnote 25, if the Commission
offered no area codes for free, the proposed fee
would be $37 per area code, up to a maximum of
$10,360. In addition, if the Commission offered (a)
One area code for free, the fee would be $41 per
area code, up to a maximum of $11,439; (b) two area
codes for free, the fee would be $45 per area code,
up to a maximum of $12,510; (c) three area codes
for free, the fee would be $49 per area code, up to
a maximum of $13,573; and (d) four area codes for
free, the fee would be $53 per area code, up to a
maximum of $14,628.
E:\FR\FM\22APP1.SGM
22APP1
Federal Register / Vol. 70, No. 77 / Friday, April 22, 2005 / Proposed Rules
registry to avoid calling consumers who
do not wish to receive telemarketing
calls, should not be charged for such
access. Charging such entities access
fees, when they are under no legal
obligation to comply with the ‘‘do-notcall’’ requirements of the TSR, may
make them less likely to obtain access
to the national registry in the future,
resulting in an increase in unwanted
calls to consumers. As with free access
to five or fewer area codes, the
Commission seeks comment on this
issue as well.
III. Invitation To Comment
All persons are hereby given notice of
the opportunity to submit written data,
views, facts, and arguments addressing
the issues raised by this Notice. All
comments should be filed as prescribed
in the ADDRESSES section above, and
must be received by June 1, 2005.
IV. Communications by Outside Parties
to Commissioners or Their Advisors
Written communications and
summaries or transcripts of oral
communications respecting the merits
of this proceeding from any outside
party to any Commissioner or
Commissioner’s advisor will be placed
on the public record. See 16 CFR
1.26(b)(5).
V. Paperwork Reduction Act
Pursuant to the Paperwork Reduction
Act,30 the Office of Management and
Budget (‘‘OMB’’) has approved the
information collection requirements in
the Revised Fee Rule and assigned OMB
Control Number 3084–0097. The
proposed rule amendment, as discussed
above, provides for an increase in the
fees that are charged for accessing the
National Do Not Call Registry.
Therefore, the proposed rule
amendment does not create any new
recordkeeping, reporting, or third-party
disclosure requirements that would be
subject to review and approval by OMB
pursuant to the Paperwork Reduction
Act.
VI. Regulatory Flexibility Act
The Regulatory Flexibility Act
(‘‘RFA’’),31 requires an agency either to
provide an Initial Regulatory Flexibility
Analysis (‘‘IRFA’’) with a proposed rule,
or certify that the proposed rule will not
have a significant economic impact on
a substantial number of small entities.
The FTC does not expect that the rule
concerning revised fees will have the
threshold impact on small entities. As
discussed in Section II, above, this
NPRM specifically proposes charging no
fee for access to data included in the
registry from one to five area codes. As
a result, the Commission anticipates
that many small businesses will be able
to access the national registry without
having to pay any annual fee. Thus, it
is unlikely that there will be a
significant burden on small businesses
resulting from the adoption of the
proposed revised fees. Nonetheless, the
Commission has determined that it is
appropriate to publish an IRFA in order
to inquire into the impact of this
proposed rule on small entities.
Therefore, the Commission has prepared
the following analysis.
A. Reasons for the Proposed Rule
As outlined in Section II, above, the
Commission is proposing to amend the
fees charged to entities accessing the
national registry in order to raise
sufficient amounts to offset the current
year costs to implement and enforce the
Amended TSR.
B. Statement of Objectives and Legal
Basis
The objective of the current proposed
rule is to collect sufficient fees from
entities that must access the National Do
Not Call Registry. The legal authority for
this NPRM is the 2005 Appropriations
Act, the Implementation Act, and the
Telemarketing Act.
C. Description of Small Entities to
Which the Rule Will Apply
The Small Business Administration
has determined that ‘‘telemarketing
bureaus’’ with $6 million or less in
annual receipts qualify as small
businesses.32 Similar standards, i.e., $6
million or less in annual receipts, apply
for many retail businesses which may be
‘‘sellers’’ and subject to the proposed
revised fee provisions outlined in this
NPRM. In addition, there may be other
types of businesses, other than retail
establishments, that would be ‘‘sellers’’
subject to the proposed rule.
As described in Section II, above,
more than 52,700 entities have accessed
five or fewer area codes of data from the
national registry at no charge. While not
all of these entities may qualify as small
businesses, and some small businesses
may be required to purchase access to
more than five area codes of data, the
Commission believes that this is the best
estimate of the number of small entities
that would be subject to the proposed
revised fee rule. The Commission
invites comment on this issue,
including information about the number
30 44
31 5
U.S.C. 3501–3520.
U.S.C. 604(a).
VerDate jul<14>2003
15:26 Apr 21, 2005
32 See
Jkt 205001
PO 00000
13 CFR 121.201.
Frm 00010
Fmt 4702
Sfmt 4702
20851
and type of small business entities that
may be subject to the revised fees.
D. Projected Reporting, Recordkeeping
and Other Compliance Requirements
The information collection activities
at issue in this NPRM consist
principally of the requirement that
firms, regardless of size, that access the
national registry submit minimal
identifying and payment information,
which is necessary for the agency to
collect the required fees. The cost
impact of that requirement and the labor
or professional expertise required for
compliance with that requirement were
discussed in section V of the Revised
Fee NPRM.33
As for compliance requirements,
small and large entities subject to the
revised fee rule will pay the same rates
to obtain access to the National Do Not
Call Registry in order to reconcile their
calling lists with the phone numbers
maintained in the national registry. As
noted earlier, however, compliance
costs for small entities are not
anticipated to have a significant impact
on small entities, to the extent the
Commission believes that compliance
costs for those entities will be largely
minimized by their ability to obtain data
for up to five area codes at no charge.
E. Duplication With Other Federal Rules
None.
F. Discussion of Significant Alternatives
The Commission recognizes that
alternatives to the proposed revised fee
are possible.34 For example, instead of
a fee based on the number of area codes
that a telemarketer accesses from the
national registry, access could be
provided on the basis of a flat fee
regardless of the number of area codes
accessed. The Commission believes,
however, that these alternatives would
likely impose greater costs on small
businesses, to the extent they are more
likely to access fewer area codes than
larger entities.
Another alternative the Commission
has considered entails providing small
businesses with free access to the
national registry.35 The Commission
continues to believe, however, ‘‘an
alternative approach that would provide
small business with exemptive relief
more directly tied to size status would
not balance the private and public
interests at stake any more equitably or
reasonably than the approach currently
33 See
69 FR at 23,704.
the discussion and request for comments in
Section II of this Notice.
35 See 69 FR at 45,583. See also, 68 FR at 16,243
n.53.
34 See
E:\FR\FM\22APP1.SGM
22APP1
20852
Federal Register / Vol. 70, No. 77 / Friday, April 22, 2005 / Proposed Rules
proposed by the Commission.’’ 36 The
Commission also continues to believe
that ‘‘such a system would present
greater administrative, technical, and
legal costs and complexities than the
Commission’s current proposal which
does not require any proof or
verification of that status.’’ 37
Another alternative would be
reducing the current number of free area
codes, but this approach might, among
other things, require additional
expenditures to process and service an
increased number of paid subscriptions.
In any event, reducing the number of
free area codes may increase, rather than
decrease, compliance costs for small
businesses, if they had to pay for certain
area codes that they can currently access
for free.
Accordingly, the Commission believes
its current proposal balances the
interests of reducing the burden for
small businesses to the greatest extent
possible, while achieving the goal of
covering the necessary costs to
implement and enforce the Amended
TSR.
Despite these conclusions, the
Commission welcomes comment on any
significant alternatives that would
further minimize the impact on small
entities, consistent with the objectives
of the Telemarketing Act, the 2005
Appropriations Act, and the
Implementation Act.
List of Subjects in 16 CFR Part 310
Telemarketing, Trade practices.
VII. Proposed Rule
Accordingly, for the reasons stated in
the preamble, the Federal Trade
Commission proposes to amend part
310 of title 16 of the Code of Federal
Regulations as follows:
PART 310—TELEMARKETING SALES
RULE
1. The authority citation for part 310
continues to read as follows:
Authority: 15 U.S.C. 6101–6108.
§ 310.8 Fee for access to the National Do
Not Call Registry.
*
*
*
*
(c) The annual fee, which must be
paid by any person prior to obtaining
access to the National Do Not Call
Registry, is $56 per area code of data
accessed, up to a maximum of $15,400;
provided, however, that there shall be
no charge for the first five area codes of
36 See
68 FR at 16,243 n.53.
37 Id.
VerDate jul<14>2003
15:26 Apr 21, 2005
Jkt 205001
ACTION:
of sprouts. In October 2004, FDA
released a produce safety action plan
entitled ‘‘Produce Safety from
Production to Consumption: 2004
Action Plan to Minimize Foodborne
Illness Associated with Fresh Produce
Consumption’’ (Produce Action Plan).
One item in the Produce Action Plan is
to initiate rulemaking to minimize
foodborne illness associated with the
consumption of sprouted seeds.
However, because of the complexities of
the issues and the uncertainty about
what the current science could support,
FDA believes that it would be of value
to hold a public meeting to gather
information relevant to a possible
regulation. We request that those who
speak at the meeting, or otherwise
provide FDA with their comments,
focus on the questions relating to the
microbial safety of seeds destined for
sprouting and sprouted seeds set out in
section II of this document.
DATES: The public meeting will be held
in College Park, MD, on Tuesday, May
17, 2005, from 8:30 a.m. to 5 p.m. We
request that everyone planning to attend
the meeting register prior to the
meeting. For security reasons and due to
space limitations, we recommend that
you register at least 5 business days
before the meeting. You may register via
the Internet and also by fax until close
of business 5 days before the meeting,
provided that space is available (see FOR
FURTHER INFORMATION CONTACT). In
addition to participating in the public
meeting, you may submit written or
electronic comments until July 18, 2005.
ADDRESSES: The public meeting will be
held at the Harvey W. Wiley Federal
Bldg., Food and Drug Administration,
Center for Food Safety and Applied
Nutrition, 5100 Paint Branch Pkwy.,
College Park, MD 20740–3835.
Submit written comments to the
Division of Dockets Management (HFA–
305), Food and Drug Administration,
5630 Fishers Lane, rm. 1061, Rockville,
MD 20852. Submit electronic comments
to https://www.fda.gov/dockets/
ecomments.
FOR FURTHER INFORMATION CONTACT:
Amy L. Green, Center for Food Safety
and Applied Nutrition (HFS–306), Food
and Drug Administration, 5100 Paint
Branch Pkwy., College Park, MD 301–
436–2025, FAX: 301–436–2651, or email: amy.green@fda.hhs.gov.
SUPPLEMENTARY INFORMATION:
The Food and Drug
Administration (FDA) is announcing a
public meeting to elicit information on
the current science related to foodborne
illness associated with the consumption
I. Background
Since 1996, FDA has responded to 27
outbreaks of foodborne illness in the
United States for which raw or lightly
cooked sprouts were the confirmed or
suspected vehicle for the illness. During
By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 05–8044 Filed 4–21–05; 8:45 am]
BILLING CODE 6750–01–P
DEPARTMENT OF HEALTH AND
HUMAN SERVICES
Food and Drug Administration
2. Revise § 310.8(c) and (d) to read as
follows:
*
data accessed by any person, and
provided further, that there shall be no
charge to any person engaging in or
causing others to engage in outbound
telephone calls to consumers and who
is accessing the National Do Not Call
Registry without being required under
this Rule, 47 CFR 64.1200, or any other
federal law. Any person accessing the
National Do Not Call Registry may not
participate in any arrangement to share
the cost of accessing the registry,
including any arrangement with any
telemarketer or service provider to
divide the costs to access the registry
among various clients of that
telemarketer or service provider.
(d) After a person, either directly or
through another person, pays the fees
set forth in § 310.8(c), the person will be
provided a unique account number
which will allow that person to access
the registry data for the selected area
codes at any time for twelve months
following the first day of the month in
which the person paid the fee (‘‘the
annual period’’). To obtain access to
additional area codes of data during the
first six months of the annual period,
the person must first pay $56 for each
additional area code of data not initially
selected. To obtain access to additional
area codes of data during the second six
months of the annual period, the person
must first pay $28 for each additional
area code of data not initially selected.
The payment of the additional fee will
permit the person to access the
additional area codes of data for the
remainder of the annual period.
*
*
*
*
*
21 CFR Chapter I
[Docket No. 2005N–0147]
Sprout Safety Public Meeting
AGENCY:
Food and Drug Administration,
HHS.
Notice of public meeting;
request for comments.
SUMMARY:
PO 00000
Frm 00011
Fmt 4702
Sfmt 4702
E:\FR\FM\22APP1.SGM
22APP1
]]>Agencies
[Federal Register Volume 70, Number 77 (Friday, April 22, 2005)]
[Proposed Rules]
[Pages 20848-20852]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-8044]
=======================================================================
-----------------------------------------------------------------------
FEDERAL TRADE COMMISSION
16 CFR Part 310
RIN 3084-0098
Telemarketing Sales Rule Fees
AGENCY: Federal Trade Commission.
ACTION: Notice of proposed rulemaking; request for public comment.
-----------------------------------------------------------------------
SUMMARY: The Federal Trade Commission (the ``Commission'' or ``FTC'')
is issuing a Notice of Proposed Rulemaking (``NPRM'') to amend the
Telemarketing Sales Rule (``TSR'') to revise the fees charged to
entities accessing the National Do Not Call Registry, and invites
written comments on the issues raised by the proposed changes.
DATES: Comments must be received by June 1, 2005.
ADDRESSES: Interested parties are invited to submit written comments.
Comments should refer to ``TSR Fee Rule, Project No. P034305,'' to
facilitate the organization of comments. A comment filed in paper form
should include this reference both in the text and on the envelope, and
should be mailed or delivered to the following address: Federal Trade
Commission/Office of the Secretary, Room H-159 (Annex K), 600
Pennsylvania Avenue, NW., Washington, DC 20580. Comments containing
confidential material must be filed in paper form, must be clearly
labeled ``Confidential,'' and must comply with Commission Rule 4.9(c),
16 CFR 4.9(c) (2005).\1\ The FTC is requesting that any comment filed
in paper form be sent by courier or overnight service, if possible,
because U.S. postal mail in the Washington, DC area and at the
Commission is subject to delay due to heightened security precautions.
---------------------------------------------------------------------------
\1\ The comment must be accompanied by an explicit request for
confidential treatment, including the factual and legal basis for
the request, and must identify the specific portions of the comment
to be withheld from the public record. The request will be granted
or denied by the Commission's General Counsel, consistent with
applicable law and the public interest. See Commission Rule 4.9(c),
16 CFR 4.9(c).
---------------------------------------------------------------------------
Comments filed in electronic form should be submitted by clicking
on the following Web link: https://secure.commentworks.com/ftc-
dncfees2005 and following the instructions on the Web-based form. To
ensure that the Commission considers an electronic comment, you must
file it on the Web-based form at https://secure.commentworks.com/ftc-
dncfees2005. You may also visit https://www.regulations.gov to read this
notice of proposed rulemaking, and may file an electronic comment
through that Web site. The Commission will consider all comments that
regulations.gov forwards to it.
The FTC Act and other laws the Commission administers permit the
collection of public comments to consider and use in this proceeding as
appropriate. All timely and responsive public comments, whether filed
in paper or electronic form, will be considered by the Commission, and
will be available to the public on the FTC Web site, to the extent
practicable, at https://www.ftc.gov. As a matter of discretion, the FTC
makes every effort to remove home contact information for individuals
from the public comments it receives before placing those comments on
the FTC Web site. More information, including routine uses permitted by
the Privacy Act, may be found in the FTC's privacy policy, at https://
www.ftc.gov/ftc/privacy.htm.
FOR FURTHER INFORMATION CONTACT: David B Robbins, (202) 326-3747,
Division of Planning & Information, Bureau of Consumer Protection,
Federal Trade Commission, 600 Pennsylvania Avenue, NW., Washington, DC
20580.
SUPPLEMENTARY INFORMATION:
I. Background
On December 18, 2002, the Commission issued final amendments to the
Telemarketing Sales Rule, which, inter alia, established the National
Do Not Call Registry, permitting consumers to register, via either a
toll-free telephone number or the Internet, their preference not to
receive certain telemarketing calls (``Amended TSR'').\2\ Under the
Amended TSR, most
[[Page 20849]]
telemarketers are required to refrain from calling consumers who have
placed their numbers on the registry.\3\ Telemarketers must
periodically access the registry to remove from their telemarketing
lists the telephone numbers of those consumers who have registered.\4\
---------------------------------------------------------------------------
\2\ See 68 FR 4580 (Jan. 29, 2003) (codified at 16 CFR pt. 310).
\3\ 16 CFR 310.4(b)(1)(iii)(B).
\4\ 16 CFR 310.4(b)(3)(iv). The TSR requires telemarketers to
access the national registry at least once every thirty-one days,
effective January 1, 2005. Id.
---------------------------------------------------------------------------
Shortly after issuance of the Amended TSR, Congress passed the Do-
Not-Call Implementation Act (``the Implementation Act'').\5\ The
Implementation Act gave the Commission the specific authority to
``promulgate regulations establishing fees sufficient to implement and
enforce the provisions relating to the `do-not-call' registry of the
[TSR]. * * * No amounts shall be collected as fees pursuant to this
section for such fiscal years except to the extent provided in advance
in appropriations Acts. Such amounts shall be available * * * to offset
the costs of activities and services related to the implementation and
enforcement of the [TSR], and other activities resulting from such
implementation and enforcement.'' \6\
---------------------------------------------------------------------------
\5\ Do-Not-Call Implementation Act, Pub. L. 108-10, 117 Stat.
557 (2003).
\6\ Id. at Section 2.
---------------------------------------------------------------------------
On July 29, 2003, pursuant to the Implementation Act and the
Consolidated Appropriations Resolution, 2003,\7\ the Commission issued
a Final Rule further amending the TSR to impose fees on entities
accessing the National Do Not Call Registry (``the Original Fee
Rule'').\8\ Those fees were based on the FTC's best estimate of the
number of entities that would be required to pay for access to the
national registry, and the need to raise $18.1 million in Fiscal Year
2003 to cover the costs associated with the implementation and
enforcement of the ``do-not-call'' provisions of the Amended TSR. The
Commission determined that the fee structure would be based on the
number of different area codes of data that an entity wished to access
annually. The Original Fee Rule established an annual fee of $25 for
each area code of data requested from the national registry, with the
first five area codes of data provided at no cost.\9\ The maximum
annual fee was capped at $7,375 for entities accessing 300 area codes
of data or more.\10\
On July 30, 2004, pursuant to the Implementation Act and the
Consolidated Appropriations Act, 2004 (``the 2004 Appropriations
Act''),\11\ the Commission issued a revised Final Rule further amending
the TSR increasing fees on entities accessing the National Do Not Call
Registry (``the Revised Fee Rule'').\12\ Those fees were based on the
FTC's experience through June 1, 2004, its best estimate of the number
of entities that would be required to pay for access to the national
registry, and the need to raise $18 million in Fiscal Year 2004 to
cover the costs associated with the implementation and enforcement of
the ``do-not-call'' provisions of the Amended TSR. The Commission
determined that the fee structure would continue to be based on the
number of different area codes of data that an entity wished to access
annually. The Revised Fee Rule established an annual fee of $40 for
each area code of data requested from the national registry, with the
first five area codes of data provided at no cost.\13\ The maximum
annual fee was capped at $11,000 for entities accessing 280 area codes
of data or more.\14\
---------------------------------------------------------------------------
\7\ Consolidated Appropriations Resolution, 2003, Pub. L. 108-7,
117 Stat. 11 (2003).
\8\ 68 FR 45134 (July 31, 2003).
\9\ Once an entity requested access to area codes of data in the
national registry, it could access those area codes as often as it
deemed appropriate for one year (defined as its ``annual period'').
If, during the course of its annual period, an entity needed to
access data from more area codes than those initially selected, it
would be required to pay for access to those additional area codes.
For purposes of these additional payments, the annual period was
divided into two semi-annual periods of six months each. Obtaining
additional data from the registry during the first semi-annual, six
month period required a payment of $25 for each new area code.
During the second semi-annual, six month period, the charge for
obtaining data from each new area code requested during that six-
month period was $15. These payments for additional data would
provide the entity access to those additional area codes of data for
the remainder of its annual term.
\10\ 68 FR at 45141.
\11\ Consolidated Appropriations Act, 2004, Pub. L. 108-199, 118
Stat. 3 (2004).
\12\ 69 FR 45580 (July 30, 2004).
\13\ Id. at 45,584. The Revised Fee Rule has the same fee
structure as the Original Fee Rule; however, fees were increased
from $25 to $40 per area code, from $15 to $20 per area code for the
second semi-annual six month period, and from a maximum of $7,375 to
$11,000.
\14\ 69 FR at 45,584.
---------------------------------------------------------------------------
In the Consolidated Appropriations Act, 2005 (``the 2005
Appropriations Act''),\15\ Congress permitted the FTC to collect
offsetting fees in the amount of $21.9 million in Fiscal Year 2005 to
implement and enforce the TSR.\16\ Pursuant to the 2005 Appropriations
Act and the Implementation Act, as well as the Telemarketing Fraud and
Abuse Prevention Act (``the Telemarketing Act''),\17\ the FTC is
issuing this NPRM to amend the fees charged to entities accessing the
National Do Not Call Registry.
---------------------------------------------------------------------------
\15\ Consolidated Appropriations Act, 2005, Pub. L. 108-447, 118
Stat. 2809 (2004).
\16\ Id. at Division B, Title V.
\17\ 15 U.S.C. 6101-08.
---------------------------------------------------------------------------
II. Calculation of Proposed Revised Fees
In the Original Fee Rule, the Commission estimated that 10,000
entities would be required to pay for access to the National Do Not
Call Registry. The Commission based its estimate on the ``best
information available to the agency'' at that time.\18\ It noted that
this estimate was based on ``a number of significant assumptions,''
about which the Commission had sought additional information during the
comment period. The Commission noted, however, that it received
virtually no comments providing information supporting or challenging
these assumptions.\19\ As a result, the Commission anticipated ``that
these fees may need to be reexamined periodically and adjusted, in
future rulemaking proceedings, to reflect actual experience with
operating the registry.'' \20\
---------------------------------------------------------------------------
\18\ 68 FR at 45140.
\19\ Id.
\20\ 68 FR at 45142.
---------------------------------------------------------------------------
In the Revised Fee Rule, the Commission reported that ``[a]s of
June 1, 2004, more than 65,000 entities had accessed the national
registry. More than 57,000 of those entities had accessed five or fewer
area codes of data at no charge, and 1,100 ``exempt'' entities also
accessed the registry at no charge. Thus, more than 7,100 entities have
paid for access to the registry, with over 1,200 entities paying for
access to the entire registry.'' \21\ The Commission based its
calculation of revised fees on this experience, with the expectation
that the number of entities accessing the registry in Fiscal Year 2004
would be substantially the same as in Fiscal Year 2003. As in the
Original Fee Rule, the Commission based its estimate on the best
information available at the time, with the continuing intent to
periodically reexamine and adjust the fees to reflect actual experience
with operating the registry.
---------------------------------------------------------------------------
\21\ 69 FR at 45584.
---------------------------------------------------------------------------
From March 1, 2004 through February 28, 2005, more than 60,800
entities have accessed all or part of the information in the registry.
Approximately 1,300 of these entities are ``exempt'' and therefore have
accessed the registry at no charge.\22\ An additional 52,700
[[Page 20850]]
entities have accessed five or fewer area codes of data, also at no
charge. As a result, approximately 6,700 entities have paid for access
to the registry, with slightly less than 1,100 entities paying for
access to the entire registry.
---------------------------------------------------------------------------
\22\ The Original Fee Rule and the Revised Fee Rule stated that
``there shall be no charge to any person engaging in or causing
others to engage in outbound telephone calls to consumers and who is
accessing the National Do Not Call Registry without being required
to under this Rule, 47 CFR 64.1200, or any other federal law.'' 16
CFR 310.8(c). Such ``exempt'' organizations include entities that
engage in outbound telephone calls to consumers to induce charitable
contributions, for political fund raising, or to conduct surveys.
They also include entities engaged solely in calls to persons with
whom they have an established business relationship or from whom
they have obtained express written agreement to call, pursuant to 16
CFR 310.4(b)(1)(iii)(B)(i) or (ii), and who do not access the
national registry for any other purpose.
---------------------------------------------------------------------------
As previously stated, the Commission can collect offsetting fees in
Fiscal Year 2005 to implement and enforce the Amended TSR.\23\ The
Commission is proposing a revised Fee Rule to raise $21.9 million of
fees to offset costs it expects to incur in this Fiscal Year for the
following purposes related to implementing and enforcing the ``do-not-
call'' provisions of the Amended TSR. First, funds are required to
operate the national registry. This includes items such as handling
consumer registration and complaints, telemarketer access to the
registry, state access to the registry, and the management and
operation of law enforcement access to appropriate information. Second,
funds are required for law enforcement efforts, including identifying
targets, coordinating domestic and international initiatives,
challenging alleged violators, and consumer and business education
efforts, which are critical to securing compliance with the Amended
TSR. Third, funds are required to cover ongoing agency infrastructure
and administration costs, including information technology structural
supports and distributed mission overhead support costs for staff and
non-personnel expenses such as office space, utilities, and supplies.
---------------------------------------------------------------------------
\23\ See Consolidated Appropriations Act, 2005, Pub. L. 108-447,
118 Stat. 2809, at Division B, Title V. The 2005 Appropriations Act
permitted the Commission to collect offsetting fees of $21.9 million
for those purposes.
---------------------------------------------------------------------------
The Commission proposes to revise the fees charged for access to
the national registry based on the assumption that approximately the
same number of entities will access similar amounts of data from the
national registry during their next annual period.\24\ Based on that
assumption, and the continued allowance for free access to ``exempt''
organizations and for the first five area codes of data, the proposed
revised fee would be $56 per area code. The fee charged to entities
requesting access to additional area codes of data during the second
six months of their annual period would be $28. The maximum amount that
would be charged to any single entity would be $15,400, which would be
charged to any entity accessing 280 area codes of data or more.
---------------------------------------------------------------------------
\24\ Telemarketers were first able to access the national
registry on September 2, 2003. As a result, the first year of
operation did not conclude until August 31, 2004. Similarly, the
second year of operation will not end until August 31, 2005. The
Commission realizes that a small number of additional entities may
access the national registry for the first time prior to September
1, 2005, and should be considered in calculating the revised fees.
In this regard, the Commission will adjust the assumptions to
reflect the actual number of entities that have accessed the
registry, and make the appropriate changes to the fees, at the time
of issuance of the Final Rule.
---------------------------------------------------------------------------
The Commission proposes to continue allowing, at least for the next
annual period, all entities accessing the national registry to obtain
the first five area codes of data for free.\25\ The Commission allowed
such free access in the Original Fee Rule and the Revised Fee Rule,
``to limit the burden placed on small businesses that only require
access to a small portion of the national registry.'' \26\ The
Commission noted that such a fee structure was consistent with the
mandate of the Regulatory Flexibility Act,\27\ which requires that to
the extent, if any, a rule is expected to have a significant economic
impact on a substantial number of small entities, agencies should
consider regulatory alternatives to minimize such impact. As stated in
the Original Fee Rule and the Revised Fee Rule, ``the Commission
continues to believe that providing access to five area codes of data
for free is an appropriate compromise between the goals of equitably
and adequately funding the national registry, on one hand, and
providing appropriate relief for small businesses, on the other.'' \28\
In addition, requiring some or all of the 52,700 entities that
currently access five or fewer area codes from the national registry at
no cost to pay a small fee for access would place an additional burden
on the registry, requiring the expenditure of more resources to handle
properly that additional traffic.
---------------------------------------------------------------------------
\25\ If all entities accessing the national registry were
charged for the first five area codes of data, the cost per area
code would be reduced to $37, while the maximum amount charged to
access the entire national registry would be $10,360.
\26\ See 68 FR at 45,140 and 69 FR at 45582.
\27\ 5 U.S.C. 601.
\28\ See 68 FR at 45141 and 69 FR at 45584. The Commission
further stated that ``[m]ost of these entities--realtors, car
dealers, community-based newspapers, and other small businesses--are
precisely the type of businesses which the Regulatory Flexibility
Act requires the agency to consider when adopting regulations.'' See
69 FR at 45583. Also see the discussion regarding the ``Regulatory
Flexibility Act'' in Section VI of this Notice.
---------------------------------------------------------------------------
While the Proposed Rule provides free access to a small portion of
the national registry, the Commission continues to seek comment on
other alternatives that would balance the burdens faced by small
businesses with the need to raise appropriate fees to fund the registry
in a more equitable manner. Because the implementation and enforcement
costs are borne by a small percentage of entities that access the
registry, the Commission is particularly interested in comments
addressing the propriety of changing or eliminating the number of area
codes for which there is no charge, and the impact, if any, on entities
that access the registry, including small businesses.\29\ In addition,
the Commission notes that the cost of accessing data in the registry is
relatively modest. For example, if the fee was $37 per area code, and
no area codes were offered for free, the total fee for a full year of
access to five area codes of data would be $185. In this regard, given
the modest nature of the fees, along with the increasing burden borne
by those organizations that do pay for access, the Commission is
especially interested in comments addressing the nature and type of
entities that are accessing five or fewer area codes at no cost,
whether these entities are primarily the types of businesses which the
Regulatory Flexibility Act requires the agency to consider when
adopting regulations, and whether such businesses need access to one,
two, three, four, or five area codes.
---------------------------------------------------------------------------
\29\ As noted in footnote 25, if the Commission offered no area
codes for free, the proposed fee would be $37 per area code, up to a
maximum of $10,360. In addition, if the Commission offered (a) One
area code for free, the fee would be $41 per area code, up to a
maximum of $11,439; (b) two area codes for free, the fee would be
$45 per area code, up to a maximum of $12,510; (c) three area codes
for free, the fee would be $49 per area code, up to a maximum of
$13,573; and (d) four area codes for free, the fee would be $53 per
area code, up to a maximum of $14,628.
---------------------------------------------------------------------------
Currently, approximately 19,000 entities access five free area
codes. The Commission invites comment on whether any changes in the
number of free area codes would affect an entity's business practices,
including whether an entity would choose not to access an area code if
it had to pay for that area code or whether the entity would pay to
continue accessing that area code.
The Commission also proposes to continue allowing ``exempt''
organizations, as discussed in footnote 22, above, to obtain free
access to the national registry. The Commission believes that any
exempt entity, voluntarily accessing the national
[[Page 20851]]
registry to avoid calling consumers who do not wish to receive
telemarketing calls, should not be charged for such access. Charging
such entities access fees, when they are under no legal obligation to
comply with the ``do-not-call'' requirements of the TSR, may make them
less likely to obtain access to the national registry in the future,
resulting in an increase in unwanted calls to consumers. As with free
access to five or fewer area codes, the Commission seeks comment on
this issue as well.
III. Invitation To Comment
All persons are hereby given notice of the opportunity to submit
written data, views, facts, and arguments addressing the issues raised
by this Notice. All comments should be filed as prescribed in the
ADDRESSES section above, and must be received by June 1, 2005.
IV. Communications by Outside Parties to Commissioners or Their
Advisors
Written communications and summaries or transcripts of oral
communications respecting the merits of this proceeding from any
outside party to any Commissioner or Commissioner's advisor will be
placed on the public record. See 16 CFR 1.26(b)(5).
V. Paperwork Reduction Act
Pursuant to the Paperwork Reduction Act,\30\ the Office of
Management and Budget (``OMB'') has approved the information collection
requirements in the Revised Fee Rule and assigned OMB Control Number
3084-0097. The proposed rule amendment, as discussed above, provides
for an increase in the fees that are charged for accessing the National
Do Not Call Registry. Therefore, the proposed rule amendment does not
create any new recordkeeping, reporting, or third-party disclosure
requirements that would be subject to review and approval by OMB
pursuant to the Paperwork Reduction Act.
---------------------------------------------------------------------------
\30\ 44 U.S.C. 3501-3520.
---------------------------------------------------------------------------
VI. Regulatory Flexibility Act
The Regulatory Flexibility Act (``RFA''),\31\ requires an agency
either to provide an Initial Regulatory Flexibility Analysis (``IRFA'')
with a proposed rule, or certify that the proposed rule will not have a
significant economic impact on a substantial number of small entities.
The FTC does not expect that the rule concerning revised fees will have
the threshold impact on small entities. As discussed in Section II,
above, this NPRM specifically proposes charging no fee for access to
data included in the registry from one to five area codes. As a result,
the Commission anticipates that many small businesses will be able to
access the national registry without having to pay any annual fee.
Thus, it is unlikely that there will be a significant burden on small
businesses resulting from the adoption of the proposed revised fees.
Nonetheless, the Commission has determined that it is appropriate to
publish an IRFA in order to inquire into the impact of this proposed
rule on small entities. Therefore, the Commission has prepared the
following analysis.
---------------------------------------------------------------------------
\31\ 5 U.S.C. 604(a).
---------------------------------------------------------------------------
A. Reasons for the Proposed Rule
As outlined in Section II, above, the Commission is proposing to
amend the fees charged to entities accessing the national registry in
order to raise sufficient amounts to offset the current year costs to
implement and enforce the Amended TSR.
B. Statement of Objectives and Legal Basis
The objective of the current proposed rule is to collect sufficient
fees from entities that must access the National Do Not Call Registry.
The legal authority for this NPRM is the 2005 Appropriations Act, the
Implementation Act, and the Telemarketing Act.
C. Description of Small Entities to Which the Rule Will Apply
The Small Business Administration has determined that
``telemarketing bureaus'' with $6 million or less in annual receipts
qualify as small businesses.\32\ Similar standards, i.e., $6 million or
less in annual receipts, apply for many retail businesses which may be
``sellers'' and subject to the proposed revised fee provisions outlined
in this NPRM. In addition, there may be other types of businesses,
other than retail establishments, that would be ``sellers'' subject to
the proposed rule.
---------------------------------------------------------------------------
\32\ See 13 CFR 121.201.
---------------------------------------------------------------------------
As described in Section II, above, more than 52,700 entities have
accessed five or fewer area codes of data from the national registry at
no charge. While not all of these entities may qualify as small
businesses, and some small businesses may be required to purchase
access to more than five area codes of data, the Commission believes
that this is the best estimate of the number of small entities that
would be subject to the proposed revised fee rule. The Commission
invites comment on this issue, including information about the number
and type of small business entities that may be subject to the revised
fees.
D. Projected Reporting, Recordkeeping and Other Compliance Requirements
The information collection activities at issue in this NPRM consist
principally of the requirement that firms, regardless of size, that
access the national registry submit minimal identifying and payment
information, which is necessary for the agency to collect the required
fees. The cost impact of that requirement and the labor or professional
expertise required for compliance with that requirement were discussed
in section V of the Revised Fee NPRM.\33\
---------------------------------------------------------------------------
\33\ See 69 FR at 23,704.
---------------------------------------------------------------------------
As for compliance requirements, small and large entities subject to
the revised fee rule will pay the same rates to obtain access to the
National Do Not Call Registry in order to reconcile their calling lists
with the phone numbers maintained in the national registry. As noted
earlier, however, compliance costs for small entities are not
anticipated to have a significant impact on small entities, to the
extent the Commission believes that compliance costs for those entities
will be largely minimized by their ability to obtain data for up to
five area codes at no charge.
E. Duplication With Other Federal Rules
None.
F. Discussion of Significant Alternatives
The Commission recognizes that alternatives to the proposed revised
fee are possible.\34\ For example, instead of a fee based on the number
of area codes that a telemarketer accesses from the national registry,
access could be provided on the basis of a flat fee regardless of the
number of area codes accessed. The Commission believes, however, that
these alternatives would likely impose greater costs on small
businesses, to the extent they are more likely to access fewer area
codes than larger entities.
---------------------------------------------------------------------------
\34\ See the discussion and request for comments in Section II
of this Notice.
---------------------------------------------------------------------------
Another alternative the Commission has considered entails providing
small businesses with free access to the national registry.\35\ The
Commission continues to believe, however, ``an alternative approach
that would provide small business with exemptive relief more directly
tied to size status would not balance the private and public interests
at stake any more equitably or reasonably than the approach currently
[[Page 20852]]
proposed by the Commission.'' \36\ The Commission also continues to
believe that ``such a system would present greater administrative,
technical, and legal costs and complexities than the Commission's
current proposal which does not require any proof or verification of
that status.'' \37\
---------------------------------------------------------------------------
\35\ See 69 FR at 45,583. See also, 68 FR at 16,243 n.53.
\36\ See 68 FR at 16,243 n.53.
\37\ Id.
---------------------------------------------------------------------------
Another alternative would be reducing the current number of free
area codes, but this approach might, among other things, require
additional expenditures to process and service an increased number of
paid subscriptions. In any event, reducing the number of free area
codes may increase, rather than decrease, compliance costs for small
businesses, if they had to pay for certain area codes that they can
currently access for free.
Accordingly, the Commission believes its current proposal balances
the interests of reducing the burden for small businesses to the
greatest extent possible, while achieving the goal of covering the
necessary costs to implement and enforce the Amended TSR.
Despite these conclusions, the Commission welcomes comment on any
significant alternatives that would further minimize the impact on
small entities, consistent with the objectives of the Telemarketing
Act, the 2005 Appropriations Act, and the Implementation Act.
List of Subjects in 16 CFR Part 310
Telemarketing, Trade practices.
VII. Proposed Rule
Accordingly, for the reasons stated in the preamble, the Federal
Trade Commission proposes to amend part 310 of title 16 of the Code of
Federal Regulations as follows:
PART 310--TELEMARKETING SALES RULE
1. The authority citation for part 310 continues to read as
follows:
Authority: 15 U.S.C. 6101-6108.
2. Revise Sec. 310.8(c) and (d) to read as follows:
Sec. 310.8 Fee for access to the National Do Not Call Registry.
* * * * *
(c) The annual fee, which must be paid by any person prior to
obtaining access to the National Do Not Call Registry, is $56 per area
code of data accessed, up to a maximum of $15,400; provided, however,
that there shall be no charge for the first five area codes of data
accessed by any person, and provided further, that there shall be no
charge to any person engaging in or causing others to engage in
outbound telephone calls to consumers and who is accessing the National
Do Not Call Registry without being required under this Rule, 47 CFR
64.1200, or any other federal law. Any person accessing the National Do
Not Call Registry may not participate in any arrangement to share the
cost of accessing the registry, including any arrangement with any
telemarketer or service provider to divide the costs to access the
registry among various clients of that telemarketer or service
provider.
(d) After a person, either directly or through another person, pays
the fees set forth in Sec. 310.8(c), the person will be provided a
unique account number which will allow that person to access the
registry data for the selected area codes at any time for twelve months
following the first day of the month in which the person paid the fee
(``the annual period''). To obtain access to additional area codes of
data during the first six months of the annual period, the person must
first pay $56 for each additional area code of data not initially
selected. To obtain access to additional area codes of data during the
second six months of the annual period, the person must first pay $28
for each additional area code of data not initially selected. The
payment of the additional fee will permit the person to access the
additional area codes of data for the remainder of the annual period.
* * * * *
By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 05-8044 Filed 4-21-05; 8:45 am]
BILLING CODE 6750-01-P
